11 August، 2026
The Department of Economics at the College of Administration and Economics, University of Mosul, Discusses a Master’s Thesis on the Relationship Between Twin Deficits and Inflation in Selected Developing Countries

The Department of Economics at the College of Administration and Economics, University of Mosul, discussed on Monday, August 10, 2026, the Master’s thesis titled “Measuring and Analyzing the Relationship Between Twin Deficits and Inflation in Selected Developing Countries,” presented by the student Dina Bassam Hazim Mohammed Ali, in Discussion Hall No. (2).
The study aimed to analyze the theoretical relationship between the components of twin deficits and the rate of inflation, as well as to measure the impact of twin deficits on inflation rates in Iraq, Egypt, Turkey, and Algeria using the Autoregressive Distributed Lag (ARDL) model to uncover the nature of the short- and long-term relationships among the variables.
The findings showed a close correlation between twin deficits and inflation, as the public budget deficit contributes to increasing inflationary pressures by stimulating aggregate demand and monetary expansion. Meanwhile, the current account deficit puts pressure on the exchange rate and increases import prices, which reinforces imported inflation—particularly when fiscal and external deficits coincide. The econometric results also revealed a complex dynamic relationship that varies from one country to another depending on differences in economic structures and the effectiveness of economic policies, in addition to proving the existence of a mutual causal relationship between the budget deficit and the current account deficit in the studied countries.
The discussion committee consisted of: Associate Professor Dr. Mustafa Fadhil Hammadi (College of Administration and Economics / University of Mosul) – Chairman, Associate Professor Dr. Raad Mohammed Nida Hammad (College of Administration and Economics / Tikrit University) – Member, Associate Professor Dr. Mohammed Waheed Hassan (College of Administration and Economics / University of Mosul) – Member, Associate Professor Dr. Sadoon Hussein Farhan (College of Administration and Economics / University of Mosul) – Member and Supervisor.





